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Friday, January 4, 2013

Dave Ramsey - Becoming DEBT FREE

We have decided that we want to live debt free so that when we get older we can live like no one else. In an attempt to do this we came across Financial Peace University by Dave Ramsey. This course is all about getting out of debt and staying out of debt! Can I just tell you that at first I was totally skeptical. I didn't think that any of Dave's systems would really work and that no matter what we would have to be in debt for the rest of our lives and that monthly payments are just a part of life. But after listening to his CD's I have seen a small light at the end of the tunnel. I think that we will be able to pay off all of our debt except the mortgage by the time this baby gets here. Dave has 7 baby steps to help accomplish this. Here they are:

We are currently on step number 2. Now that doesn't seem very far in the whole process but by the time we are done with this step we will be debt free except for the house. We will have gotten ride of 10,000 in debt. That is our truck paid off and my school loan paid off. The hubby and I have also implemented the cash envelope system. More on that here. This system is all about telling your money where it is supposed to go and how you are going to spend it.

We tried this system in the past and it worked very well for us but my only complaint was that there were envelopes full of money laying around the house.And when you used to live next to a kid who is addicted to drugs and sales his parents TV to a friend to get a fix while they are gone for an hour it kinda made me nervous. So we stopped the system but we are back on track now it is a new year and a new start and this time we are going to follow through. We have rearranged things a little bit differently and are using bank accounts to help keep the money safe.

Check out Dave's sight if you would like to jump on board with us and become debt free.